Mining ZimbabweLatest Mining News, Policy and Industry Updates

Karo Platinum, a Zimbabwean platinum group metals (PGM) project owned by Tharisa, is ramping up construction at its Chegutu site as it works to close a $165 million funding round critical to completing the first phase.

By Ryan Chigoche

Delayed by a slump in global platinum prices, the project is now regaining momentum with visible progress on site and a clear path forward.

To support its financing goals, Karo recently hosted a site tour for potential investors, showcasing the scale and progress of its operations.

The company has already raised $37 million through a bond listed on the Victoria Falls Stock Exchange and plans to extend the facility.

Apart from that, Karo is also pursuing a $50 million to $100 million gold streaming agreement, leveraging gold produced as a by-product to secure upfront capital.

Located on Zimbabwe’s mineral-rich Great Dyke, Karo’s long-life operation will include a 10-year open-pit phase followed by a 30-year underground mine, producing up to 226,000 ounces of PGMs annually.

This would make it Zimbabwe’s third-largest producer, behind Zimplats and Unki.

Despite early ambitions to complete the mine in 2024, the downturn in platinum prices forced a revised timeline.

The current plan targets first ore to mill within 15 months after closing the fundraising round, aligning construction and commissioning with capital availability.

On the ground, construction is advancing steadily.

Karo has prioritised foundational earthworks ahead of the rainy season to prevent delays.

A key development is a 710-metre-long, 14-metre-high dam nearing completion.

Located 7.5 km from the plant, it will store 5,000 megalitres of water—essential for processing—and is being built using labour-intensive rock packing, creating 220 local jobs in the process.

Power infrastructure is also progressing. A 35-kilometre, 132 kV transmission line is under construction, linking the Saloon substation to the site.

Substations and electrical buildings are being built early, enabling contractors to start installations in parallel.

Power will be stepped down to 11 kV and 550 volts for plant operations.

With foundational work largely complete, the site is moving into vertical construction.

The thickener area is nearly finished, with steel installation scheduled for early 2025. The towering 30-metre mould building, which will house 125-tonne moulds, will require a 600-tonne crane for installation, reflecting the project’s technical complexity. Simultaneously, steelwork on the flotation circuit is underway.

Beyond infrastructure, the project’s socio-economic impact is significant. Karo expects to employ 1,000 people in mining and processing, with a further 1,500 jobs during plant expansion.

Indirect employment could bring the total benefit to around 10,000 people, supporting families and local suppliers.

At full capacity, Karo is expected to produce 200,000 ounces of PGMs per year, contributing nearly 20% of Zimbabwe’s national output.

With PGMs priced between $1,400 and $1,500 per ounce, annual revenues could reach $300 million, equivalent to nearly 1% of Zimbabwe’s GDP.

To handle the scale of the operation, Karo has also established an on-site bonded warehouse, reducing customs delays by up to two weeks per shipment.

The completed plant will include 260 kilometres of electrical cabling and nearly 2,000 tonnes of structural steel.

With support from CBZ, ABSA, and growing investor interest, Karo Platinum is steadily transforming the Chegutu project into Zimbabwe’s next major PGM operation.

As construction advances and funding nears completion, the project stands to deliver not just minerals but lasting economic value for the country.

The Deputy Minister of Finance and Investment Promotion, David Mnangagwa, has warned that continued power supply challenges are directly undermining the country’s beneficiation goals, and as a result, miners are being forced to pay more in taxes for exporting unrefined minerals, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Platinum Group Metals (PGM) symposium during the Chamber of Mines Annual General Meeting, Mnangagwa acknowledged that despite Zimbabwe holding the world’s third-largest platinum reserves, the country is yet to realise full value from its mineral wealth. One of the key setbacks, he said, was the lack of reliable energy — a non-fiscal issue with deep fiscal consequences.

“Unreliable power directly impacts the viability of beneficiation,” he said. “We must therefore ensure continued investment in reliable energy supply for the mining sector.”

The Deputy Minister noted that while the government has implemented various fiscal support measures, including royalty and tax concessions, the absence of processing infrastructure due to power and capital constraints means miners continue to export unbeneficiated concentrates, which attract higher taxes.

Currently, Zimbabwe charges a beneficiation tax of up to 5% on unrefined platinum exports as a disincentive to the export of raw minerals. However, Mnangagwa admitted that this punitive measure is doing little to drive local processing due to infrastructural limitations.

“The current framework is based on an export tax disincentive, rather than a positive incentive structure for those investing in value addition and refining,” he said. “We need to review this approach if beneficiation is to become viable.”

Zimbabwe’s existing tax framework for PGMs:

• Royalty rate on platinum pegged at 7%, calculated on LME prices (85% for concentrate, 90% for matte), with 50% paid in kind, 10% in forex, and 40% in local currency.
• Income tax at 15% for special leaseholders and 25% for others.
• Additional profits tax (APT) and VAT exemptions on capital equipment.
• 100% capital expenditure deduction in the year incurred.
• Loss carry-forward provisions to cushion new projects.

Despite this, mining revenue has been declining. According to ZIMRA, the sector’s contribution to national revenue dropped to 8% in March 2025, down from 12% in November 2024, driven largely by price volatility and reduced beneficiation.

ZIMRA Commissioner of Domestic Taxes, Misheck Gova, recently lamented that PGM sector compliance and revenue contributions are falling despite numerous concessions. He added that royalties are now tax-deductible, which reduces income tax further, and pointed out miners’ frustrations with delays in VAT refunds, informalisation, and illicit financial flows.

The Deputy Minister acknowledged these concerns, saying the government is exploring “a tiered royalty system” and clearer fiscal guidelines to promote long-term investment. He also hinted at “targeted support” for companies investing in PGM refining.

“We are aware of the miners’ concerns around high input costs, complex fiscal structures, and the burden of taxes when beneficiation is not feasible,” he said. “Our commitment is to craft a balanced approach — one that supports both national revenue and industry growth.”

As Zimbabwe aims to transform itself into a regional beneficiation hub, Mnangagwa stressed the importance of policy predictability, stable fiscal regimes, and continuous consultation with industry players.

“PGMs are national assets,” he said. “By providing intelligent, targeted fiscal support, we can unlock increased export earnings, foster resilience, and build a diversified economy.”

However, without reliable power and genuine incentives for refining, Zimbabwe’s beneficiation dream risks remaining just that — a dream miners are taxed for failing to realise.

The Zimbabwe Revenue Authority (ZIMRA) has pledged to clear its long-standing backlog of value-added tax (VAT) refunds, a move likely to be welcomed by the mining sector, which has consistently raised alarm over the burden of over-taxation and delayed reimbursements, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the 2025 Chamber of Mines Annual Mining Conference and Exhibition held in Victoria Falls last week, ZIMRA’s Commissioner of Domestic Taxes, Misheck Gova, acknowledged the fiscal frustration of many mining houses and confirmed that significant progress had been made in clearing outstanding refunds.

“We had a backlog of refunds, but we have put our foot on the pedal and we are almost there now,” Gova said. “We understand that refunds are critical for operational cash flows, and the authority is committed to timely reimbursements moving forward.”

ZIMRA’s statement comes at a time when players in the mining sector — especially small- to medium-scale producers — have lamented what they describe as a harsh and often confusing tax framework, which includes withholding taxes, royalties, income tax, customs duties, and capital gains tax.

Industry players have repeatedly pointed out the difficulty of operating viably under a system where tax burdens are compounded by delays in receiving refunds and forex surrender requirements that are mismatched with market realities.

In previous statements, miners have cited VAT refunds as a key barrier to growth. Many claim they are forced to delay exploration or procurement of inputs due to locked-up funds, contributing to reduced production and layoffs in an already strained economic environment.

The Chamber of Mines and Zimbabwe Miners Federation (ZMF) have expressed concern that while formal miners are expected to comply with a complex tax regime, the informal and unregulated sector continues to grow, often escaping formal tax scrutiny. This discrepancy, miners argue, further distorts the playing field.

Gova admitted that revenue contributions from the mining sector have been on the decline despite the sector enjoying several fiscal incentives and concessions.

“From a comparative analysis, the contribution of the sector to total tax revenues in USD terms has gone down to about 18%. In ZIG, it’s even lower at around 8%,” he said.

He added that despite concessions — such as the deductibility of royalties, capital expenditure allowances, zero-rated VAT on some goods, and special mining lease benefits — tax compliance pain points remain. These include informalisation, commodity price manipulation, transfer pricing, illicit financial flows, and climate-related risks.

In an effort to address these, ZIMRA has adopted a more sector-focused approach by categorising miners according to minerals, such as lithium and gold, and dedicating specialised audit teams. The authority has also recruited industry-specific experts from the Ministry of Mines to improve auditing and taxpayer engagement.

A notable legislative shift has also been the recognition of royalties as a tax-deductible expense, something miners had long pushed for.

“We used to deny those claims, but due to legislative amendments, we now allow royalties to be deducted, which obviously impacts tax revenue,” Gova explained.

Gova further highlighted ZIMRA’s adoption of digital solutions like the Tax and Revenue Management System (TAMS), which now automates processes such as tax clearance issuance and improves overall taxpayer compliance efficiency. High-speed X-ray scanners have also been deployed at border posts to enhance customs clearance and detect contraband.

Despite these improvements, miners maintain that until refund delays and forex constraints are resolved, the sector’s contribution to Vision 2030 will remain limited.

As Zimbabwe aims to grow its economy into an upper-middle-income status by 2030, the sustainability of its resource-based revenue model hinges not only on mineral production but also on the government’s ability to maintain fair, predictable, and responsive tax policies. Miners hope ZIMRA’s new refund drive is more than just talk — and that action will follow swiftly.

Four illegal miners lost their lives in the early hours of Tuesday, 28 May 2025, following a tragic incident at Pickstone Peerless Mine in Chegutu, owned by Dallaglio Investments (Pvt) Ltd.

The fatal accident occurred after a group of approximately 30 individuals unlawfully entered the open pit mine and detonated an unauthorised blast, causing a collapse that trapped five people.

In an official statement, Dallaglio Investments confirmed the fatalities and expressed deep sorrow over the loss of life.

“Dallaglio Investments (Pvt) Ltd. regrets to announce the tragic and untimely deaths of four individuals who were involved in illegal mining activities in an open pit at Pickstone Peerless Mine,” the company said. “Upon receiving an alert regarding the incident, our emergency response team was immediately deployed to the scene. One person was successfully rescued alive, while, regrettably, four were recovered deceased.”

The Zimbabwe Republic Police (ZRP) also confirmed their presence at the scene, where they assisted in the recovery and transfer of the deceased to ZRP Chegutu.

“The ZRP promptly attended the scene and facilitated the transfer of the deceased to ZRP Chegutu,” Dallaglio noted.

The mining company has issued a stern warning to local communities, urging them to avoid illegal mining practices, particularly those involving explosives, which pose grave dangers.

“Dallaglio strongly urges all community members to prioritize their safety and refrain from entering mine sites unlawfully or engaging in illegal mining activities, particularly those involving explosives. Such actions pose severe risks to life and undermine community well-being,” the statement read.

As the mining sector continues to grapple with the challenges posed by illegal operations, Dallaglio reaffirmed its commitment to supporting community awareness and collaborating with law enforcement to prevent further tragedies.

“Our thoughts are with the families affected by this loss. We remain committed to working closely with law enforcement and community leaders to enhance awareness around mine safety and prevent future occurrences.”

This incident adds to a troubling pattern of fatalities linked to illegal mining activities across Zimbabwe, highlighting the urgent need for increased safety education, law enforcement, and alternative livelihood strategies for artisanal miners.

Zimbabwe recorded its first trade deficit contraction in 2025, largely due to the strong performance of the mining sector, particularly gold and nickel exports, which offset declining imports.

By Ryan Chigoche

According to newly released Zimstat data, the country’s trade deficit narrowed sharply to US$118.7 million in April 2025, a 49.5% decline from the US$235.2 million registered in March. This marks the first monthly contraction in the trade deficit this year, following a persistent widening trend since January.

A contraction in the trade deficit means that the gap between imports and exports has narrowed, often due to increased export earnings, reduced imports, or a combination of both. This signals improved trade performance and can ease pressure on foreign currency reserves.

The improvement in trade performance was underpinned by a surge in mineral exports, with gold and nickel mattes leading the way. Export earnings rose sharply, while imports dipped for the second consecutive month.

A key driver of the gold boom is the escalation of global geopolitical tensions, which has prompted investors to seek safe-haven assets like gold. As a result, gold prices soared to a historic high of US$3,500 per ounce in April, providing a windfall for Zimbabwe’s gold producers.

Gold output for April surged to 3.82 tonnes, the highest monthly total since December 2021, when 4.3 tonnes were produced. This production boost translated into US$303.9 million in gold export revenues, making it the second-highest monthly figure in the country’s history, after the US$361 million recorded in November 2024.

In addition to gold, nickel mattes—another critical mining export—played a key role in lifting export earnings. These gains reflect the continued importance of mineral commodities in sustaining Zimbabwe’s economy.

Total exports for April reached US$662.6 million, with the United Arab Emirates (49.8%), South Africa (24.0%), and China (15.9%) emerging as the top three destinations. Together, these countries accounted for approximately 90% of the total export value, reaffirming the strategic importance of Zimbabwe’s mineral trade with key global partners.

On the import side, Zimbabwe saw a 4.5% decline in April, with total imports falling to US$781.3 million from US$818.3 million the previous month. This was largely due to a steep 43% drop in maize imports, which fell from US$686.9 million to US$393.3 million.

Other key declines included soya bean oil and commercial vehicle imports. However, import expenditure shifted toward petroleum oils, machinery, and cereal inputs that are often essential for industrial operations, including mining, indicating a reallocation of resources rather than a broad-based decline in demand.

Despite this positive shift in the trade balance, Zimbabwe’s mining sector continues to grapple with structural challenges.

Restrictions on selling gold directly to the London Bullion Market limit earnings potential and increase costs for local producers. Additionally, persistent electricity shortages compel mining firms to rely on expensive backup power, pushing up operational costs and constraining productivity.

To sustain and build upon the recent gains, the government needs to implement a series of targeted reforms.

Ensuring a consistent electricity supply to mines is essential, as is reducing tax burdens and streamlining regulatory procedures to create a more competitive operating environment.

Addressing gold smuggling—estimated to be costing the country billions annually—is also vital, along with reconsidering gold surrender requirements, which many in the industry view as overly punitive.

Gold remains Zimbabwe’s most important export commodity, accounting for roughly one-third of export earnings and contributing around 60% of the country’s foreign currency inflows.

The sector is supported by both large-scale miners, such as Kuvimba Mining House, Padenga Holdings, and Freda Rebecca, and by thousands of artisanal and small-scale miners whose collective output forms a significant share of total gold production.

Supporting both groups through improved access to finance, better infrastructure, and more inclusive policies will be crucial to boosting national output.

In line with this, ZimTrade aims to grow Zimbabwe’s exports by at least 10% annually, targeting US$14 billion by 2030.

Given mining’s dominant share of foreign exchange earnings, the sector is expected to be a cornerstone of this strategy and of broader efforts to transition Zimbabwe into an upper-middle-income economy.

The Zimstat April trade data signals what is possible when mining thrives, but sustaining this momentum will depend on addressing long-standing bottlenecks and fostering an enabling environment for miners at all levels.